Supreme Court Ruling Highlights Protections for Federal Reserve Chair

The U.S. Supreme Court has ruled in a way that currently protects Federal Reserve Chair Jerome Powell from being dismissed by President Trump. The ruling addressed the legality of firing two federal labor board members, indirectly affecting debates on the Fed's independence from presidential influence.

In a significant ruling, the U.S. Supreme Court decided on Thursday that current legal structures protect Federal Reserve Chair Jerome Powell from potential dismissal by President Donald Trump. The court's decision came amid a broader legal context involving the removal of two federal labor board members.

The cases involving the National Labor Relations Board and the Merit Systems Protection Board called into question the presidential authority over high-ranking officials. However, the Supreme Court clarified that the Federal Reserve, a unique entity, remains insulated from such actions except in cases of misconduct.

This decision provides a semblance of security for the financial markets, which rely heavily on the Federal Reserve's independence. While Trump has repeatedly criticized Powell, experts like Derek Tang and Krishna Guha find the ruling reassuring but not yet conclusive in shielding the Fed from political whims.

(With inputs from agencies.)